[cma-l] Community Radio 50% Rules
Alan Coote
alan.coote at btinternet.com
Mon Oct 11 16:30:17 BST 2010
Hi Phil,
I cant see how one can conceivably argue that restricting a revenue stream
to 50% is a benefit either to the station or its community.
Ofcom, manage commercial radio on their output not on their input and even
they say they are over regulated! They manage to write a format in a couple
of sentences and yet we have pages.
What a totally nuts situation we have, that the organisations most likely to
provide a community benefit are hamstrung by over regulation and come to
that fixed coverage which bears no relation to local need or topography.
Clearly there needs to be some regulatory limits, so let create a minimum
set of rules that deliver community benefits.
Alan
PS More proof; If a Community Station provides a service on DAB it is not
regulated in the same way, BUT yet again is the poor relation to commercial
radio as at least they get an automatic extension to their FM licence
truly Bonkers!!!!
From: cma-l-bounces at mailman.commedia.org.uk
[mailto:cma-l-bounces at mailman.commedia.org.uk] On Behalf Of Phil Korbel
Sent: 11 October 2010 12:22 PM
To: CMA-L
Subject: [cma-l] Community Radio 50% Rules
Good call Murray
Last year, I was sat with Ed Richards [CEO Ofcom] at Wythenshawe FM with a
few other local licence holders and he asked us - unbidden - what we thought
of the 50% rule. I expected a bit of a ruck from the stations that had spot
ads and sponsorship cental to their business plan - but there was none.
Indeed one ex ILR head [who I'd expected to lead the charge] said he was
happy with the rule - because of the 'in kind' rule in main.
I was part of the original lobby for sector's founding legislation and we
proposed the 50% rule as a safeguard for a 'mixed economy' - to ensure that
stations would not have to go for biggest audience/lowest common denominator
- as they would if reliant solely on commercial revenue. Of course this does
deprive some stations of vital revenue so the challenge I'd put back is -
what other means could there be to ensure that the essential 'social gain'
character of the sector is not lost? And that cant be by more rigorous
policing of the Key Commitements as we're likely to see a very different
[shrunk?] Ofcom. Perhaps a different number other than 50%?
And besides - isnt the headlong retreat from local output by many of the
main commercial operators opportunity enough?
So, let's have light touch regulation that preserves our distinctiveness -
but please dont make the mistake of thinking that a solely advert funded
station will be able to deliver social gain in the same way as a mixed
economy one... As Zane Ibrahim famously said - dont make your stations
popular - make them necessary!
bests
Phil
[who now battens down the hatches...]
On 10 October 2010 18:49, Murray Dawson <murraywdawson at gmail.com> wrote:
Alan,
I feel that the changes to the 50% rule now leaves a fair amount of
flexibility to ensure that Community Radio stations can develop on a sound
financial footing - without 'selling out' by going down the commercial ad
driven route.
Our organisation works across a range of community media formats, which
allows us even greater flexibility, as it's the income of the company that
is measured. Therefore every grant we get for another area of the
organisations work means the rule becomes less and less relevant to us (and
in any case we had 14,000 hrs of volunteering last year, and had no
commercial adverts).
I did have a major issue with the original rule though - and it cost our
organisation heavily as we had to scale back our original Big Lottery bid to
a figure which I felt we could match 50/50 - this is no longer the case
though.
So my recommendation - diversification......
Where I do have a serious problem with the 'rules' though is with the power
and range we can transmit.
Why should we be restricted to a fraction of the power of the commercials?
In Aberdeen, we are in a situation where a large proportion of our target
communities don't get reception - or get a very poor reception, and the
commercials still moan to Ofcom that our reach is too far!
Too far for what?
We're not interested in stealing their revenues or audience - the opposite
is the case. We have evidence that our station has increased radio
listeners across the city (commercial and community) by re-engaging people
with the medium again.
Let's pull together and campaign on this one instead?
All the best
Murray
On 09/10/2010 12:48, Alan Coote wrote:
Ian,
The CMA will do nothing.
Sorry to be so harsh, but during the Ofcom Community Radio review a couple
of years ago they supported the 50% rule as it characterises Community
Radio.
I totally agree with you its outdated and in desperate need of review along
with a number of aspects the sooner the better.
Alan
From: cma-l-bounces at mailman.commedia.org.uk
[mailto:cma-l-bounces at mailman.commedia.org.uk] On Behalf Of Ian Hickling
Sent: 09 October 2010 8:47 AM
To: Jaqui Devereux; cma-l
Subject: [cma-l] Community Radio 50% Rules
I think most of us understood them Jaqui.
More so now - thank you.
But what exactly is the CMA doing about changing this outdated and punishing
regulation?
Ian Hickling
Partner
transplan UK
_____
Date: Fri, 8 Oct 2010 15:46:23 +0100
From: jaqui.devereux at commedia.org.uk
To: cma-l at commedia.org.uk
Subject: [cma-l] Community radio 50% rules - understanding them
Dear all
Just a clarification on the revised 50% rules for community radio following
the CR Amendment Order:
No more than 50% of your income can come from on air advertising and/or
sponsorship.
The Amendment Order does however now allow that more than 50% can come from
grants, Service Level Agreements etc.
Volunteer time can be counted as part of the "income" mix, but it must be
auditable (timesheets, signing in sheets etc). However, if 50% of your
income does come from on air ads etc, then only 25% of your income can be
from volunteer in kind time.
So e.g.:
1 - station has a Big Lottery grant of £50,000 for the year (lucky it!), on
air ads etc £20,000, volunteer time £10,000 - that mix is OK.
2 - station has a BL grant of £20,000, on air ads £50,000, volunteer time
£30,000 - NOT OK as volunteer time exceeds 25% of the total
3 - station has BL grant of £25,000, on air ads £50,000, volunteer time
£25,000 - is OK as volunteer time 25%
4 - station has BL grant of £20,000, on air ads £50,000, volunteer time
£30,000, OFF air ads/sponsorship £20,000 - is OK as off air does not count
towards the 50% limit
Hope that helps....
Jaqui
--
Jaqui Devereux
Director, Community Media Association
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Jaqui Devereux
Director, Community Media Association
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please reply to
murray at shmu.org.uk
Murray Dawson
Project Director
Station House Media Unit
Station Road, Woodside,
Aberdeen AB24 2WB
Tel - 01224 515013
www.shmu.org.uk
listen to our community radio station live on 99.8FM and at www.shmufm.net
SHMU is a charity registered in Scotland - SC034211 and a registered Limited
Company - SC332413
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Phil Korbel
Director
0161 237 5454
Radio Regen is a community, media and urban regeneration charity
A company limited by guarantee and registered in England and Wales No.
3753832
Registered office: 12 Hilton Street, Manchester, M1 1JF
Registered Charity No. 1077763
www.radioregen.org
www.communityradiotoolkit.net
--
Phil Korbel
Director
0161 237 5454
Radio Regen is a community, media and urban regeneration charity
A company limited by guarantee and registered in England and Wales No.
3753832
Registered office: 12 Hilton Street, Manchester, M1 1JF
Registered Charity No. 1077763
www.radioregen.org
www.communityradiotoolkit.net
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